Cabela's 2012 Annual Report Download - page 94

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84
CABELA’S INCORPORATED AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in Thousands Except Share and Per Share Amounts)
Foreign Currency Translation – Assets and liabilities of Cabela’s Canadian operations are translated into
United States dollars at currency exchange rates in effect at the end of a reporting period. Gains and losses from
translation into United States dollars are included in accumulated other comprehensive income (loss) in our
consolidated balance sheets. Revenues and expenses are translated at average monthly currency exchange rates.
Earnings Per Share – Basic earnings per share is computed by dividing net income by the weighted average
number of shares of common stock outstanding during the period. Diluted earnings per share is computed by
dividing net income by the sum of the weighted average number of shares outstanding plus all additional common
shares that would have been outstanding if potentially dilutive common share equivalents had been issued.
2. ACCOUNTING PRONOUNCEMENTS
Effective June 16, 2011, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2011-05,
Comprehensive Income, requiring entities to report components of other comprehensive income in either a single
continuous statement or in two separate but consecutive statements of net income and other comprehensive
income. This ASU does not change the items that must be reported in comprehensive income, how these items are
measured, or when these items must be classified to net income. Effective with the first quarter of 2012, we have
provided herein the required financial reporting presentation pursuant to ASU 2011-05.
On February 5, 2013, the FASB issued ASU No. 2013-02, Reporting of Amounts Reclassified Out of
Accumulated Other Comprehensive Income, which adds additional disclosure requirements relating to the
reclassification of items out of accumulated other comprehensive income. This ASU is effective for the first quarter
of 2013.
Effective September 15, 2011, the FASB issued ASU No. 2011-08, Testing Goodwill for Impairment, which
gives companies testing goodwill for impairment the option of performing a qualitative assessment before
calculating the fair value of a reporting unit in step one of the goodwill impairment test. If companies determine,
based on qualitative factors, that the fair value of a reporting unit is more likely than not less than the carrying
amount, the two-step impairment test would be required. Otherwise, further testing would not be needed. ASU
2011-08 was effective for the first quarter of 2012 for the Company. The value of our goodwill was not affected by
the adoption of the provisions of this ASU.
The FASB issued ASU No. 2011-04, Amendments to Achieve Common Fair Value Measurement and
Disclosure Requirements in U.S. GAAP and IFRSs, to improve comparability of fair value measurements between
statements presented in U.S. GAAP and IFRS. This ASU, which was effective for the first quarter of 2012
for the Company, provided additional explanation on how to measure fair value but did not require additional
fair value measurements. Certain amendments in this ASU require the assessment of additional disclosures
regarding the measurement of fair value. The adoption of this ASU did not have a significant impact on our fair
value measurements.
3. CHANGE IN ACCOUNTING PRINCIPLES - CONSOLIDATION OF CABELA’S MASTER CREDIT
CARD TRUST
The Company’s wholly-owned bank subsidiary, WFB, utilizes the Trust for the purpose of routinely selling
and securitizing credit card loans and issuing beneficial interest to investors. The accounting guidance on
consolidations in ASC Topic 810, and accounting for transfers of financial assets and the criteria for determining
whether to consolidate a variable interest entity in ASC Topic 860, resulted in the consolidation of the Trust
effective January 3, 2010. Prior to ASC Topics 810 and 860, the securitizations issued by the Trust qualified for
sales treatment under generally accepted accounting principles and, therefore, the Trust was excluded from the
Company’s consolidated financial statements.